Oklahoma 2023 Regular Session

Oklahoma Senate Bill SB576 Compare Versions

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3-ENGR. H. A. to ENGR. S. B. NO. 576 Page 1 1
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28-ENGROSSED HOUSE AMENDME NT
29- TO
30-ENGROSSED SENATE BILL NO . 576 By: Montgomery of the Senate
29+HOUSE OF REPRESENTATIVES - FLOOR VERSION
30+
31+STATE OF OKLAHOMA
32+
33+1st Session of the 59th Legislature (2023)
34+
35+COMMITTEE SUBSTITUTE
36+FOR ENGROSSED
37+SENATE BILL NO. 576 By: Montgomery of the Senate
3138
3239 and
3340
3441 Boatman of the House
3542
3643
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3946
47+COMMITTEE SUBSTITUTE
48+
4049 [ motor vehicles - tax exemptions - foreign export
4150 title - certificates - form – fee - exception -
4251 effective date -
4352 emergency ]
4453
4554
4655
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48-AMENDMENT NO. 1. Strike the title, enacting clause, and entire bill
49-and insert:
50-
51-
52-
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54-"[ motor vehicles - tax exemptions - foreign export
55-title - certificates - form – fee - exception -
56-effective date -
57- emergency ]
58-
59-
6057 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
6158 SECTION 1. AMENDATORY 68 O.S. 2021, Section 2105, is
6259 amended to read as f ollows:
6360 Section 2105. An original or a transfer certificate of title or
6461 a foreign export certificate of title, as provided for in Section
6562 1105 of Title 47 of the Oklahoma Statutes, shall be issued without
63+the payment of the excise t ax levied by Section 21 01 et seq. of this
64+title for:
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92-the payment of the excise t ax levied by Section 21 01 et seq. of this
93-title for:
9492 1. Any vehicle owned by a nonresident person who operate s
9593 principally in some ot her state but who is in Oklahoma only
9694 occasionally;
9795 2. Any vehicle brought into this state by a person formerly
9896 living in another state, who has owned and registered the vehicle in
9997 such other state of residence at least sixty (60) days prior to the
10098 time it is required to be registered in this state; pro vided,
10199 however, this paragraph s hall not apply to businesses engaged in
102100 renting cars without a d river;
103101 3. Any vehicle registered by the State of Oklahoma, by any of
104102 the political subdivisions thereof, or by a fire department
105103 organized pursuant to Section 592 of Title 18 of the Oklahoma
106104 Statutes to be used for the purposes of t he fire department, or a
107105 vehicle which is the subject of a lease or lease -purchase agreement
108106 executed between the person seeking an or iginal or transfer
109107 certificate of title for the v ehicle and a municipality, count y,
110108 school district, or fire protection di strict. The person see king an
111109 original or transfer certificate of title shall provide adequate
112110 proof that the vehicle is subject to a lease or lease-purchase
113111 agreement with a municip ality, county, school district, or fire
114112 protection district at the time t he excise tax levied wo uld
115113 otherwise be payable. The Oklahoma Tax Commission shall have the
114+authority to determine what constitutes a dequate proof as required
115+by this section;
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142-authority to determine what constitutes a dequate proof as required
143-by this section;
144143 4. Any vehicle, the legal ownership o f which is obtained by the
145144 applicant for a certificate of title by inheritance;
146145 5. Any used motor vehicle, travel trailer, or commercial
147146 trailer which is owned and being offe red for sale by a person
148147 licensed as a dealer to sell the same, under the provisi ons of the
149148 Oklahoma Vehicle License and R egistration Act:
150149 a. if such vehicle, travel trailer, or commercial trailer
151150 has been registered in Oklahoma and the excise tax
152151 paid thereon, or
153152 b. when such vehicle, travel trailer, or commercial
154153 trailer has been reg istered in some other state but is
155154 not the latest manufactured m odel.
156155 Provided, the provisions of this paragraph shall not be
157156 construed as allowing an exemption to any person not licensed as a
158157 dealer of used motor vehicles, travel trailers, or commercial
159158 trailers, or as an automotive dismantler a nd parts recycler in th is
160159 state;
161160 6. Any vehicle which was purchased by a person licensed to sell
162161 new or used motor vehicles in anothe r state:
163162 a. if such vehicle is not purchased for operation or
164163 resale in this state, and
164+b. the state from which the dealer is licensed offers
165+reciprocal privileges to a dealer licensed in this
166+state, pursuant to a reciprocal agreeme nt between the
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191-b. the state from which the dealer is licensed offers
192-reciprocal privileges to a dealer licensed in this
193-state, pursuant to a reciprocal agreeme nt between the
194194 duly authorized agent of the Tax Commission and the
195195 licensing state;
196196 7. Any vehicle, the ownership of which was obtained by the
197197 lienholder or mortgagee u nder or by foreclosure of a lien or
198198 mortgage in the manner provided by law or to the in surer under
199199 subrogated rights arising by reason of loss under an insuranc e
200200 contract;
201201 8. Any vehicle whic h is taxed on an ad valorem basis;
202202 9. Any vehicle or motor vehi cle, the legal ownership of which
203203 is obtained by transfers:
204204 a. from one corporation to another corporation purs uant
205205 to a reorganization. As used in this subsec tion the
206206 term “reorganization” means:
207207 (1) a statutory merger or consolida tion, or
208208 (2) the acquisition by a corporation of substantially
209209 all of the properties of another corporation wh en
210210 the consideration is solely all or a part of the
211211 voting stock of the a cquiring corporation, or of
212212 its parent or subsidiary corporation,
213213 b. in connection with the wind ing up, dissolution, or
214214 liquidation of a corporation only when there is a
215+distribution in kind to the sharehold ers of the
216+property of such corporation,
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241-distribution in kind to the sharehold ers of the
242-property of such corporation,
243244 c. to a corporation where the former own ers of the
244245 vehicle or motor vehicle trans ferred are, immediately
245246 after the transfer, in control of the corporation, and
246247 the stock or securities receive d by each is
247248 substantially in proportion to the interest in the
248249 vehicle or motor vehicle prior to the tra nsfer,
249250 d. to a partnership if the former owners of the vehicle
250251 or motor vehicle transferred are, immediately after
251252 the transfer, members of such partne rship and the
252253 interest in the partnership received by each is
253254 substantially in proportion to the interest in the
254255 vehicle or motor vehicle prior to the transfer,
255256 e. from a partnership to the members thereof when made in
256257 the dissolution of such partnership,
257258 f. to a limited liabilit y company if the former owners of
258259 the vehicle or motor vehicle transferred are,
259260 immediately after the transfer, members of the limited
260261 liability company and the interest in the limited
261262 liability company received by each is substanti ally in
262263 proportion to the interest in the vehicle or motor
263264 vehicle prior to the transfer, or
265+g. from a limited liability company to the members
266+thereof when made in the dissolution of such
267+partnership;
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290-g. from a limited liability company to the members
291-thereof when made in the dissolution of such
292-partnership;
293295 10. Any vehicle which is purchased by a person to be used by a
294296 business engaged in renting motor vehicles without a driver,
295297 provided:
296298 a. the vehicle shall not be rented to the same person for
297299 a period exceeding ninety (90) days,
298300 b. any such vehicle exempted from the excise tax by these
299301 provisions shall not b e placed under any type of lease
300302 agreement,
301303 c. on any such vehicle exempt ed from the excise tax by
302304 this subsection that is reregistered in this st ate,
303305 without a prior sale or transfer to the persons
304306 specified in divisions (1) and (2) of this
305307 subparagraph, at any time prior to the expiration of
306308 twelve (12) months from the date o f issuance of the
307309 original title, the seller shall pay immediately the
308310 amount of excise tax whic h would have been due had
309311 this exemption not been granted plus a penalty of
310312 twenty percent (20%). No such exci se tax or penalty
311313 shall become due and payable if the vehicle is sold or
312314 transferred in a condition either physical or
313315 mechanical which would ren der it eligible for a
316+salvage title pursuant to law or if the vehicle is
317+sold and transferred in this state at any time prior
318+to the expiration of twelve (12) m onths:
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340-salvage title pursuant to law or if the vehicle is
341-sold and transferred in this state at any time prior
342-to the expiration of twelve (12) m onths:
343346 (1) to the manufacturer o f the vehicle or its
344347 controlled financing arm, or
345348 (2) to a factory authorized franchised new motor
346349 vehicle dealer which holds a franchise of the
347350 same line-make of the vehicle being purchased, or
348351 d. when this exemption is cla imed, the Tax Commission
349352 shall issue a special title which shall restrict the
350353 transfer of the title only within this state prior to
351354 the expiration of twelve (12) months unless:
352355 (1) payment of the excise tax plus penalty as
353356 provided in this section is made,
354357 (2) the sale is made to a perso n specified in
355358 division (1) or (2) of sub paragraph c of this
356359 paragraph, or
357360 (3) the vehicle is eligible for a salvage title.
358361 For all other tax purposes vehicles herein exempted shall be
359362 treated as though the excise tax has be en paid;
360363 11. Any vehicle of the latest manufactured model, registered
361364 from a title in the name of the original manufacturer or assigned to
362365 the original manufacturer and issued by any state and transferred t o
363366 a licensed, franchised Oklahoma motor vehicle d ealer, as defined by
367+Section 1102 of Title 47 of the Oklahoma Statutes, w hich holds a
368+franchise of the same line-make as the vehicle being registered;
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390-Section 1102 of Title 47 of the Oklahoma Statutes, w hich holds a
391-franchise of the same line-make as the vehicle being registered;
392396 12. Any new motor vehicle, regi stered in the name of a
393397 manufacturer or dealer of new motor vehicles, for which a license
394398 plate has been issued pursuant to Section 1116.1 of Titl e 47 of the
395399 Oklahoma Statutes, if such vehicle is authorized by the manufacturer
396400 or dealer for personal use by an individual. The aut horization for
397401 such use shall not exceed four (4) months which shall not be renew ed
398402 or the exemption provided by this subs ection shall not be
399403 applicable. The exemption provided by this subsection shall not be
400404 applicable to a transf er of ownership or regis tration subsequent to
401405 the first registration of t he vehicle by a manufacturer or dealer;
402406 13. Any vehicle, travel trailer, or commercial trailer of the
403407 latest manufacturer model purchased by a franchised Oklahoma dealer
404408 licensed to sell the same which hold s a franchise of the same line-
405409 make as the vehicle, travel trailer, or commercial trailer being
406410 registered;
407411 14. Any vehicle which is the subject of a lease or lease-
408412 purchase agreement and which the ownership of such vehicle is bein g
409413 obtained by the lessee , if the vehicle excise tax was paid at the
410414 time of the initial lease or lease -purchase agreement;
411415 15. Any vehicle which:
412416 a. is purchased by a private, nonprofit organization
413417 which is exempt from taxation pursuant to the
418+provisions of Section 501(c)(3) of the Internal
419+Revenue Code, 26 U.S.C., Section 50 1(c)(3), and which
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440-provisions of Section 501(c)(3) of the Internal
441-Revenue Code, 26 U.S.C., Section 50 1(c)(3), and which
442447 is primarily funded by a fraternal or civic service
443448 organization with at leas t one hundred local chapters
444449 or clubs, and
445450 b. is designed and used to provide mobile he alth
446451 screening services to the general public at no cost to
447452 the recipient, and for which no reimbursement of any
448453 kind is received from any health insurance provider,
449454 health maintenance organization, or governmental
450455 program;
451456 16. Any vehicle which is purcha sed by an individual who has
452457 been honorably discharged from active servic e in any branch of the
453458 Armed Forces of the United States or Oklahoma Nati onal Guard and who
454459 has been certified by the United States Department of Veterans
455460 Affairs, its successor, or t he Armed Forces of the U nited States to
456461 be a disabled veteran in receipt of compensation at the one -hundred-
457462 percent rate for a permanent disabilit y sustained through mil itary
458463 action or accident resulting from disease contracted while in such
459464 active service and registered with the veterans registry created by
460465 the Oklahoma Department of Veterans Affairs; provid ed, that if the
461466 veteran has previously re ceived exemption pursua nt to this
462467 paragraph, no registration with the veterans registry shall be
463468 required. This exemption may not be claimed by an individual for
469+more than one vehicl e in a consecutive three -year period, unless the
470+vehicle is a replacement for a vehicle which wa s destroyed and
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490-more than one vehicl e in a consecutive three -year period, unless the
491-vehicle is a replacement for a vehicle which wa s destroyed and
492498 declared by the insurer to be a total loss claim. The Tax
493499 Commission shall promulgate any rule s necessary to implement the
494500 provisions of this s ection; or
495501 17. Any vehicle on w hich ownership is transferred by a
496502 repossessor directly back to the owner or owners from whom the
497503 vehicle was repossessed; provided, ownership shall be assigned by
498504 the repossessor within thirty (30) days of issuance of the
499505 repossession title and shall be i dentical to that reflected in the
500506 vehicle title record immediate ly prior to the repossession; or
501507 18. Any vehicle approved by Service Oklahoma for the issuance
502508 of a foreign export certificate of title, as provided in Section
503509 1105 of Title 47 of the Oklahoma Statutes.
504510 SECTION 2. AMENDATORY 47 O.S. 2021, Section 1105, as
505511 last amended by Section 110, Chapter 282, O.S.L. 2022 (47 O.S. Supp.
506512 2022, Section 1105), is amended to read as follows:
507513 Section 1105. A. As used in the Oklahoma Vehicle License and
508514 Registration Act:
509515 1. “Salvage vehicle” means any vehicle which is within the last
510516 ten (10) model years and which has been damaged by collision or
511517 other occurrence to the extent that the cost of repairing the
512518 vehicle for safe operation on the highway exceeds sixty percent
513519 (60%) of its fair market value, as defined by Section 1111 of this
520+title, immediately prior to the damage. For purposes of this
521+section, actual repair costs shall only include labor and parts for
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540-title, immediately prior to the damage. For purposes of this
541-section, actual repair costs shall only include labor and parts for
542549 actual damage to the suspension, motor, transmission, frame or
543550 unibody and designated structural components;
544551 2. “Rebuilt vehicle” means any salvage vehicle which has been
545552 rebuilt and inspected for the purpose of registration and title;
546553 3. “Flood-damaged vehicle” means a salvage or rebuilt vehicle
547554 which was damaged by flooding or a vehicle which was submerged at a
548555 level to or above the dashboard of the vehicle and on which an
549556 amount of loss was paid by the insurer;
550557 4. “Unrecovered-theft vehicle” means a vehicle which has been
551558 stolen and not yet recovered;
552559 5. “Recovered-theft vehicle” means a vehicle, including a
553560 salvage or rebuilt vehicle, which was recovered from a theft; and
554561 6. “Junked vehicle” means any vehicle which is incapable of
555562 operation or use on the highway, has no resale value except as a
556563 source of parts or scrap and has an eighty percent (80%) loss in
557564 fair market value; and
558565 7. “Foreign export vehicle ” means any motor vehicle purchased
559566 by an individual or entity doing business i n this state if the
560567 vehicle is contracted to be shipped to a destination outsid e of the
561568 United States or its territories or its tribal lands, as defined in
562569 25 U.S.C., Section 300 1(15), within one hundred twenty (120) days of
563570 purchase.
571+B. The owner of every vehicle in this state shall possess a
572+certificate of title as proof of ownership of such vehicle, except
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590-B. The owner of every vehicle in this state shall possess a
591-certificate of title as proof of ownership of such vehicle, except
592600 those vehicles registered pursuant to Section 1120 of this title and
593601 trailers registered pursuant to Section 1133 of this title,
594602 previously titled by anyone in another state and engaged in
595603 interstate commerce, and except as provided in subsection M of this
596604 section. Except for owners that possess an agricultural exemption
597605 permit pursuant to Section 1358.1 of Title 68 of the Oklahoma
598606 Statutes, the owner of an all-terrain vehicle or a motorcycle used
599607 exclusively off roads or highways in this state which is purchased
600608 or the ownership of which is transferred on or after July 1, 2005,
601609 and the owner of a utility vehicle used exclusively off roads and
602610 highways in this state which is purchased or the ownership of which
603611 is transferred on or after July 1, 2008, shall possess a certificate
604612 of title as proof of ownership. Any person possessing an
605613 agricultural exemption permit and owning an all-terrain vehicle or a
606614 motorcycle used exclusively off roads or highways in this state
607615 which is purchased or the ownership of which is transferred on or
608616 after July 1, 2008, shall possess a certificate of title as proof of
609617 ownership. Upon receipt of proper application information by such
610618 owner, Service Oklahoma shall issue an original or transfer
611619 certificate of title. Until July 1, 2008, any security interest in
612620 an all-terrain vehicle that attached and was perfected before July
613621 1, 2005, and that has not otherwise terminated shall remain
622+perfected, and shall take priority over any subsequently perfe cted
623+security interest in the same all-terrain vehicle, notwithstanding
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640-perfected, and shall take priority over any subsequently perfe cted
641-security interest in the same all-terrain vehicle, notwithstanding
642651 that a certificate of title may have been issued with respect to the
643652 same all-terrain vehicle on or after July 1, 2005, and that a lien
644653 may have been recorded on said the certificate of title. There
645654 shall be eight nine types of certificates of title:
646655 1. Original title for any motor vehicle which is not a
647656 remanufactured, salvage, unrecovered-theft, rebuilt, rebodied,
648657 foreign export, or junked vehicle;
649658 2. Salvage title for any motor vehicle which is a salvage
650659 vehicle or is specified as a salvage vehicle or the equivalent
651660 thereof on a certificate of title from another state;
652661 3. Rebuilt title for any motor vehicle which is a rebuilt
653662 vehicle;
654663 4. Junked title for any motor vehicle which is a junked vehicle
655664 or is specified as a junked vehicle or the equivalent thereof on a
656665 certificate of title from another state;
657666 5. Classic title for any motor vehicle, except a junked
658667 vehicle, which is twenty-five (25) model years or older;
659668 6. Remanufactured title for any vehicle which is a
660669 remanufactured vehicle;
661670 7. Unrecovered-theft title for any motor vehicle which has been
662671 stolen and not recovered; and
672+8. Rebodied title for any motor vehicle which is a rebodied
673+vehicle; and
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689-8. Rebodied title for any motor vehicle which is a rebodied
690-vehicle; and
691701 9. Foreign export title for any foreign export vehicle.
692702 Service Oklahoma shall prescribe a form to be completed and
693703 submitted under oath together with the purchase contract for the
694704 vehicle and proof of commitment to ship the vehicle by common
695705 carrier vessel, air, rail, or any other commo n carrier for hire.
696706 Upon approval by Service Oklahoma and payment of the required
697707 certificate of title fee, Service Oklahoma shall issue a foreign
698708 export certificate of title.
699709 Application for a certificate of title, whether the initial
700710 certificate of title or a duplicate, may be made to Service Oklahoma
701711 or any licensed operator. When application is made with a licensed
702712 operator, the application information shall be transmitted either
703713 electronically or by mail to Service Oklahoma by the licensed
704714 operator. If the application information is transmitted
705715 electronically, the licensed operator shall forward the required
706716 application along with evidence of ownership, where required, by
707717 mail. Where the transmission of application information cannot be
708718 performed electronically, Service Oklahoma is authorized to provide
709719 postage paid envelopes to licensed operators for the purpose of
710720 mailing the application along with evidence of ownership, where
711721 required. Service Oklahoma shall upon receipt of proper application
712722 information issue an Oklahoma certificate of title. The
723+certificates may be mailed to the applicant. Upon issuance of a
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739-certificates may be mailed to the applicant. Upon issuance of a
740751 certificate of title, Service Oklahoma shall provide the appropriate
741752 licensed operator with confirmation of such issuance.
742753 C. 1. The application for certificate of title shall be upon a
743754 blank form furnished by Service Oklahoma, containing:
744755 a. a full description of the vehicle,
745756 b. the manufacturer’s serial or other identification
746757 number,
747758 c. the motor number and the date on which first sold by
748759 the manufacturer or dealer to the owner,
749760 d. any distinguishing marks,
750761 e. a statement of the applicant’s source of title,
751762 f. any security interest upon the vehicle, and
752763 g. such other information as Service Oklahoma may
753764 require.
754765 2. The application for a certificate of title for a vehicle
755766 which is within the last seven (7) model years shall require a
756767 declaration as to whether the vehicle has been damaged by collision
757768 or other occurrence and whether the vehicle has been recovered from
758769 theft and the extent of the damage to the vehicle. The declaration
759770 shall be made by the owner of a vehicle if:
760771 a. the vehicle has been damaged or stolen,
761772 b. the owner did or did not receive any payment for the
762773 loss from an insurer, or
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789801 c. the vehicle is titled or registered in a state that
790802 does not classify the vehicle or brand the title
791803 because of damage to or loss of the vehicle similar to
792804 the classifications or brands utilized by this state.
793805 The declaration shall be based upon the best information and
794806 knowledge of the owner and shall be in addition to the requirements
795807 specified in paragraph 1 of this subsection. Service Oklahoma shall
796808 not issue a certificate of title for a vehicle which is subject to
797809 the provisions of this paragraph without the required declaration,
798810 completed and signed by the owner of the vehicle. Upon receipt of
799811 an application without the properly completed declaration, Service
800812 Oklahoma shall return the application to the applicant with notice
801813 that the title may not be issued without the required declaration.
802814 Nothing in this paragraph shall prohibit Service Oklahoma from
803815 recognizing the type of or brand on a title or other ownership
804816 document issued by another state or the inspection conducted in
805817 another state and issuing the appropriate certificate of title for
806818 the vehicle.
807819 3. The certificate of title shall have the following security
808820 features:
809821 a. intaglio printing or security thread, with or without
810822 watermark,
811823 b. latent images,
812824 c. fluorescent inks,
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839852 d. micro print,
840853 e. void background, and
841854 f. color coding.
842855 4. Each title issued pursuant to the provisions of the Oklahoma
843856 Vehicle License and Registration Act shall be color coded as
844857 determined by Service Oklahoma.
845858 5. The certificate of title shall be of such size and design
846859 and color as Service Oklahoma may direct pursuant to the provisions
847860 of this section. The title shall be on colored paper or other
848861 material as designated by Service Oklahoma and be of such intensity
849862 or hue as will allow easy identification as to whether the title is
850863 an original title, a salvage title, a rebuilt title, remanufactured
851864 title, rebodied title, foreign export title, or a junked title. The
852865 type of title shall be identified on the front of the certificate of
853866 title. The original title, rebuilt title, remanufactured title, an
854867 unrecovered-theft title, rebodied title, foreign export title, or
855868 classic title shall be identified by the word “Original”, “Rebuilt”,
856869 “Remanufactured”, “Unrecovered Theft”, “Rebodied”, “Foreign Export”,
857870 or “Classic” printed in the upper right quadrant of the certificate
858871 of title, in the space which is currently captioned “type of title”.
859872 A rebodied title shall also identify on the front of the title the
860873 year, make and model of the originally manufactured vehicle which
861874 has been rebodied and display a notation that reads as follows:
862875
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888902 “This vehicle has been assembled with new major components licensed
889903 by the original manufacturer.”
890904 D. 1. To obtain an original certificate of title for a vehicle
891905 that is being registered for the first time in this state which has
892906 not been previously registered in any other state, the applicant
893907 shall be required to deliver, as evidence of ownership, a
894908 manufacturer’s certificate of origin properly assigned by the
895909 manufacturer, distributor, or dealer licensed in this or any other
896910 state shown thereon to be the last transferee to the applicant upon
897911 a form to be prescribed and approved by Service Oklahoma. A
898912 manufacturer’s certificate of origin shall contain:
899913 a. the manufacturer’s serial or other identification
900914 number,
901915 b. date on which first sold by the manufacturer to the
902916 dealer,
903917 c. any distinguishing marks including model and the year
904918 same was made,
905919 d. a statement of any security interests upon the
906920 vehicle, and
907921 e. such other information as Service Oklahoma may
908922 require.
909923 2. The manufacturer’s certificate of origin shall have the
910924 following security features:
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937952 a. intaglio printing or security thread, with or without
938953 watermark,
939954 b. latent images,
940955 c. fluorescent inks,
941956 d. micro print, and
942957 e. void background.
943958 E. In the absence of a dealer’s or manufacturer’s number,
944959 Service Oklahoma may assign such identifying number to the vehicle,
945960 which shall be permanently stamped, burned, or pressed or attached
946961 into the vehicle, and a certificate of title shall be delivered to
947962 the applicant upon payment of all fees and taxes, and the remaining
948963 copies shall be permanently filed and indexed by Service Oklahoma.
949964 Service Oklahoma shall assign an identifying number to any rebuilt
950965 vehicle if the vehicle identification number displayed on the
951966 rebuilt vehicle does not accurately describe the vehicle as rebuilt.
952967 The licensed operator, at the time of inspection of the rebuilt
953968 vehicle pursuant to Section 1111 of this title, shall identify the
954969 make, model, and year for the body to accurately describe the
955970 rebuilt vehicle. At the time of the inspection, an appropriate
956971 identifying number shall be permanently stamped, burned, pressed, or
957972 attached on the rebuilt vehicle. The assigned identifying number
958973 shall be recorded on the certificate of title for the rebuilt
959974 vehicle. The dealer’s or manufacturer’s vehicle identification
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9861002 number on the rebuilt vehicle shall be preserved in the computer
9871003 files of Service Oklahoma for at least five (5) years.
9881004 F. When registering for the first time in this state a vehicle
9891005 which was not originally manufactured for sale in the United States,
9901006 to obtain a certificate of title, Service Oklahoma shall require the
9911007 applicant to deliver:
9921008 1. As evidence of ownership, if the vehicle has not previously
9931009 been titled in the United States, the documents constituting valid
9941010 proof of ownership in the country in which the vehicle was
9951011 originally purchased, together with a notarized translation of any
9961012 such documents; and
9971013 2. As evidence of compliance with federal law, copies of the
9981014 bond release letters for the vehicle issued by the United States
9991015 Environmental Protection Agency and the United States Department of
10001016 Transportation, together with a receipt issued by the Internal
10011017 Revenue Service indicating that the applicable federal gas guzzler
10021018 tax has been paid.
10031019 Service Oklahoma shall not issue a certificate of title for a
10041020 vehicle which is subject to the provisions of this paragraph without
10051021 the required documentation from agencies of the United States and
10061022 evidence of ownership. Upon receipt of an application without the
10071023 required documentation, Service Oklahoma shall return the
10081024 application to the applicant with notice that the certificate of
10091025 title may not be issued without the required documentation. Nothing
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10361053 in this paragraph shall prohibit Service Oklahoma from issuing
10371054 certificates of title for antique or classic vehicles not driven
10381055 upon the public streets, roads, or highways, for mini-trucks
10391056 registered pursuant to Section 1151.3 of this title, or for medium-
10401057 speed electric vehicles.
10411058 G. When registering in this state a vehicle which was titled in
10421059 another state and which title contains the name of a secured party
10431060 on the face of the other state certificate of title, or such state
10441061 certificate is being held by the secured party in that state or any
10451062 other state, Service Oklahoma or the licensed operator shall
10461063 complete a lien entry form as prescribed by Service Oklahoma. The
10471064 owner of such vehicle shall file an affidavit with Service Oklahoma
10481065 or the licensed operator stating that title to the vehicle is being
10491066 held by a secured party, has not been issued pursuant to the laws of
10501067 the state where titled, and that there is an existing lien or
10511068 encumbrance on the vehicle. The current name and address of the
10521069 secured party or lienholder shall also be stated in the affidavit.
10531070 The form of the affidavit shall be prescribed by Service Oklahoma
10541071 and contain any other information deemed necessary by Service
10551072 Oklahoma. A statement of the lien or encumbrance shall be included
10561073 on the Oklahoma certificate of title and the lien or encumbrance
10571074 shall be deemed continuously perfected as though it had been
10581075 perfected pursuant to Section 1110 of this title. For completing
10591076 the lien entry form and recording the security interest on the
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10861104 certificate of title, Service Oklahoma or the licensed operator
10871105 shall collect a fee of Three Dollars ($3.00) which shall be in
10881106 addition to other fees provided by the Oklahoma Vehicle License and
10891107 Registration Act. The fee, if collected by the licensed operator
10901108 pursuant to this subsection, shall be retained by the licensed
10911109 operator.
10921110 H. The charge for each certificate of title issued, except for
10931111 junked titles as defined in paragraph 4 of subsection B of this
10941112 section and foreign export titles, shall be Eleven Dollars ($11.0 0),
10951113 which charge shall be in addition to any other fees or taxes imposed
10961114 by law for such vehicle. One Dollar ($1.00) of each such charge
10971115 shall be deposited in the Oklahoma Tax Commission Reimbursement Fund
10981116 through December 31, 2022, and beginning January 1, 2023, it shall
10991117 be deposited in the Service Oklahoma Reimbursement Fund. However,
11001118 the charge shall not apply to any vehicle which is to be registered
11011119 in this state pursuant to the provisions of Section 1120 or 1133 of
11021120 this title and which was registered in another state at least sixty
11031121 (60) days prior to the time it is required to be registered in this
11041122 state. When an insurer requests a salvage or junk title in the name
11051123 of the insurer resulting from the settlement of a total loss claim
11061124 and upon presentation of appropriate proof of loss documentation as
11071125 required by Service Oklahoma, such transfer may be processed as one
11081126 title transaction, without first requiring issuance of a replacement
11091127 certificate of title in the name of the vehicle owner. The fee
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11361155 shall be Twenty-two Dollars ($22.00). Two Dollars ($2.00) of this
11371156 fee shall be deposited in the Oklahoma Tax Commission Reimbursement
11381157 Fund. The charge for a foreign export title shal l be One Hundred
11391158 Dollars ($100.00), which charge shall b e in addition to any ot her
11401159 fees or taxes imposed by law for such vehicle. One Dol lar ($1.00)
11411160 of this fee shall be deposited in the Service Oklahoma Reimbursement
11421161 Fund.
11431162 I. The vehicle identification number of a junked vehicle shall
11441163 be preserved in the computer files of Service Oklahoma for a period
11451164 of not less than five (5) years. The charge of junked titles as
11461165 defined in paragraph 4 of subsection B of this section shall be Four
11471166 Dollars ($4.00). The fee remitted to the Tax Commission shall be
11481167 deposited in the Oklahoma Tax Commission Reimbursement Fund through
11491168 December 31, 2022, and beginning January 1, 2023, this fee shall be
11501169 deposited in the Service Oklahoma Reimbursement Fund.
11511170 J. If a vehicle is sold to a resident of another state
11521171 destroyed, dismantled, or ceases to be used as a vehicle, the owner
11531172 shall immediately notify Service Oklahoma. Absent evidence to the
11541173 contrary, failure to notify Service Oklahoma shall be prima facie
11551174 evidence that the vehicle has been in continuous operation in this
11561175 state.
11571176 K. If a vehicle is stolen, the owner shall immediately notify
11581177 the appropriate law enforcement agency. Immediately after receiving
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11851205 such notification, the law enforcement agency shall notify Service
11861206 Oklahoma.
11871207 L. Except for all-terrain vehicles, utility vehicles and
11881208 motorcycles used exclusively for off-road use, no title for an out-
11891209 of-state vehicle, except for foreign export titles or any commercial
11901210 truck or truck-tractor registered pursuant to Section 1120 of this
11911211 title which is engaged in interstate commerce or any trailer or
11921212 semitrailer registered pursuant to Section 1133 of this tit le which
11931213 is engaged in interstate commerce, shall be issued without an
11941214 inspection of such vehicle and payment of a fee of Four Dollars
11951215 ($4.00) for such inspection; provided, Service Oklahoma may enter
11961216 into reciprocal agreements with other states for such inspections to
11971217 be performed at locations outside the boundaries of this state for
11981218 vehicles which:
11991219 1. Are offered for sale at auction;
12001220 2. Have been solely used as vehicles for rent under the
12011221 ownership of a licensed motor vehicle dealer or a person engaged in
12021222 the business of renting motor vehicles; or
12031223 3. Have not been registered in this or any other state for more
12041224 than one (1) year.
12051225 The inspection shall include a comparison of the vehicle
12061226 identification number on the vehicle with the number recorded on the
12071227 ownership records and the recording of the actual odometer reading
12081228 on the vehicle. The four-dollar fee shall be collected by the
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12351256 licensed operator or Service Oklahoma when the title is issued. The
12361257 licensed operator shall retain Two Dollars ($2.00). The remaining
12371258 Two Dollars ($2.00) shall be deposited in the Oklahoma Tax
12381259 Commission Reimbursement Fund through December 31, 2022, and
12391260 beginning January 1, 2023, this fee shall be deposited in the
12401261 Service Oklahoma Reimbursement Fund.
12411262 Service Oklahoma may allow the inspection to be performed at a
12421263 location out-of-state by another state’s department of motor
12431264 vehicles or state police.
12441265 M. No title for any out-of-state vehicle offered for sale at
12451266 salvage pools, salvage disposal sales, or an auction, or by a dealer
12461267 or a licensed automotive dismantler and parts recycler, shall be
12471268 issued without an inspection to compare the vehicle identification
12481269 number on the vehicle with the number recorded on the ownership
12491270 record and to record the actual odometer reading on the vehicle.
12501271 Upon request of the seller, person or entity conducting an auction,
12511272 dealer or licensed dismantler, the inspection shall be conducted at
12521273 the location or place of business of the sale, auction, dealer, or
12531274 the dismantler. The inspection shall be conducted by any licensed
12541275 operator or a duly authorized employee thereof; provided, if the
12551276 vehicle identification number on the vehicle offered for sale at
12561277 salvage pools, salvage disposal sales or a classic or antique
12571278 auction does not match the number recorded on the ownership record,
12581279 the inspection may be conducted at the location of or place of
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12851307 business of such sale or auction by any state, county or city law
12861308 enforcement officer. Service Oklahoma may enter into reciprocal
12871309 agreements with other states for such inspections to be performed at
12881310 locations outside the boundaries of this state for vehicles which:
12891311 1. Are offered for sale at auction;
12901312 2. Have been solely used as vehicles for rent under the
12911313 ownership of a licensed motor vehicle dealer or a person engaged in
12921314 the business of renting motor vehicles; or
12931315 3. Have not been registered in this or any other state for more
12941316 than one (1) year.
12951317 The inspection shall be certified upon forms prescribed by Service
12961318 Oklahoma. The name and other identification of the author ized
12971319 person conducting the inspection shall be legibly printed or typed
12981320 on the form. Prior to any inspection by any employee of a licensed
12991321 operator, the licensed operator shall notify Service Oklahoma of the
13001322 name and any other identification information requested by Service
13011323 Oklahoma of the authorized person. A signature specimen of the
13021324 authorized person shall be submitted to Service Oklahoma by the
13031325 employing licensed operator. If the authorization to inspect
13041326 vehicles is withdrawn or the employer-employee relationship is
13051327 terminated, the licensed operator, immediately, shall notify Service
13061328 Oklahoma and return any remaining inspection forms to Service
13071329 Oklahoma. The fee for the inspection shall be Four Dollars ($4.00).
13081330 The licensed operator shall retain Three Dollars ($3.00) of the fee.
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13351358 Fees received by a licensed operator or an authorized employee
13361359 thereof shall be handled and accounted for in the manner as
13371360 prescribed by law for any other fees paid to or received by a
13381361 licensed operator. Out-of-state vehicles brought into this state by
13391362 a person licensed in another state to sell new or used vehicles to
13401363 be sold within this state at a motor vehicle auction which is
13411364 limited to dealer-to-dealer transactions shall not be required to be
13421365 inspected, unless the vehicle is purchased by an Oklahoma dealer.
13431366 Any person licensed in another state to sell new or used motor
13441367 vehicles, who offers a motor vehicle for sale within this state at a
13451368 motor vehicle auction which is limited to dealer-to-dealer
13461369 transactions, shall not be within the definition of “owner” in
13471370 Section 1102 of this title, for purposes of Section 1101 et seq. of
13481371 this title.
13491372 N. A licensed motor vehicle dealer, upon payment of a fee of
13501373 Fifteen Dollars ($15.00), may reassign an out-of-state certificate
13511374 of title to a used motor vehicle provided such dealer obtains the
13521375 appropriate inspection form required by either subsection L or M of
13531376 this section and attaches the form to the out-of-state certificate
13541377 of title. Licensed operators shall be allowed to retain Two Doll ars
13551378 and twenty-five cents ($2.25) of the fee plus an additional Two
13561379 Dollars ($2.00) or Three Dollars ($3.00) as provided in subsections
13571380 L and M of this section for performance of the inspection. Two
13581381 Dollars ($2.00) of the fee shall be deposited in th e Service
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13851409 Oklahoma Reimbursement Fund. An out-of-state vehicle which has been
13861410 rebuilt shall be inspected pursuant to the provisions of Section
13871411 1111 of this title. Service Oklahoma shall train licensed operators
13881412 in interpreting vehicle identification numbers to assure that it
13891413 accurately describes the vehicle and to detect rollback or
13901414 alteration of the odometer. Failure of a licensed operator to
13911415 inspect the vehicle and make the required notations shall be a
13921416 misdemeanor punishable by a fine of not more than One Thousand
13931417 Dollars ($1,000.00) for the first offense and Five Thousand Dollars
13941418 ($5,000.00) for the second offense or subsequent offense, or by
13951419 imprisonment in the county jail for not more than six (6) months, or
13961420 by both such fine and imprisonment.
13971421 O. The ownership of any unrecovered vehicle which has been
13981422 declared a total loss by an insurer because of theft shall be
13991423 transferred to the insurer by an unrecovered-theft vehicle title;
14001424 provided, the ownership of any such vehicle which has been declared
14011425 a total loss by an insurer licensed by the Insurance Department of
14021426 the State of Oklahoma this state and maintaining a multi-state motor
14031427 vehicle salvage processing center in this state shall be transferred
14041428 to the insurer by a salvage or an unrecovered-theft title without
14051429 the requirement of a visual inspection of the vehicle identification
14061430 number by the insurer. Upon recovery of the vehicle, the ownership
14071431 shall be transferred by an original title, salvage title, or junked
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14341459 title, as may be appropriate based upon an estimate of the amount of
14351460 loss submitted by the insurer.
14361461 P. When an insurance company makes a total loss settlement on a
14371462 total loss vehicle and the insurance company or a salvage pool
14381463 authorized by the insurance company is unable to obtain the properly
14391464 endorsed certificate of ownership or other evidence of ownership
14401465 acceptable to Service Oklahoma within thirty (30) days following
14411466 acceptance by the owner of an offer of an amount in settlement of a
14421467 total loss, that insurance company or salvage pool, on a form
14431468 provided by Service Oklahoma and signed under penalty of perjury,
14441469 may request Service Oklahoma to issue the applicable salvage title
14451470 for the vehicle. The request shall include information declaring
14461471 that the requester has made at least two written attempts to obtain
14471472 the certificate of ownership or other acceptable evidence of title.
14481473 Q. The owner of any vehicle which is incapable of operation or
14491474 use on the public roads and has no resale value, except as parts,
14501475 scrap, or junk, may deliver the certificate of title to the vehicle
14511476 to Service Oklahoma for cancellation. Upon verification that any
14521477 perfected lien against the vehicle has been released, the
14531478 certificate of title shall be canceled without any fee, charge, or
14541479 cost required from the owner. The vehicle identification numbers on
14551480 the certificates of title shall be preserved in the computer files
14561481 of Service Oklahoma for at least five (5) years from the date of
14571482 cancellation of the certifi cate of title. Service Oklahoma shall
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14841510 prescribe and provide an affidavit form to be completed by the owner
14851511 of any vehicle for which the certificate of title is canceled. No
14861512 title or registration shall subsequently be issued for a vehicle for
14871513 which the certificate of title has been surrendered pursuant to this
14881514 subsection. Service Oklahoma shall prescribe a form for the
14891515 transfer of ownership of a vehicle for which the certificate of
14901516 title has been canceled.
14911517 R. The owner of a vehicle which is not within the last ten (10)
14921518 model years, not roadworthy and not capable of repair for operation
14931519 or use on the roads and highways, or a vehicle which is being sold
14941520 to a scrap metal dealer pursuant to Section 11-92 of Title 2 of the
14951521 Oklahoma Statutes, shall transfer the vehicle only upon a
14961522 certificate of ownership prescribed by Service Oklahoma, if the
14971523 certificate of title to the vehicle is lost, has been canceled, or
14981524 otherwise not available. The prescribed owner ship form shall
14991525 include the names and addresses of the buyer and seller, the driver
15001526 license number or Social Security number of the seller, the make and
15011527 model of the vehicle, and the public vehicle identification number.
15021528 If there is no public vehicle iden tification number, the vehicle
15031529 shall be inspected by a law enforcement officer to verify the
15041530 absence of the number on the vehicle and the prescribed ownership
15051531 form shall include a signed statement, by such officer, verifying
15061532 the absence of the number.
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15331560 The certificate of ownership shall be completed in triplicate.
15341561 The buyer and seller shall each retain a copy. Within thirty (30)
15351562 days of the transaction, the seller shall submit one copy to Service
15361563 Oklahoma or a licensed operator accompanied with a fee of Four
15371564 Dollars ($4.00). One Dollar ($1.00) shall be retained by the
15381565 licensed operator and Three Dollars ($3.00) shall be deposited in
15391566 the Oklahoma Tax Commission Reimbursement Fund in the State Treasur y
15401567 through December 31, 2022, and beginning January 1, 2023, this fee
15411568 shall be deposited in the Service Oklahoma Reimbursement Fund.
15421569 Upon receipt of the certificate, Service Oklahoma shall verify
15431570 that any perfected lien upon the vehicle has been released. If the
15441571 lien is not released, Service Oklahoma shall mail notice of the
15451572 transfer to the lienholder at the lienholder’s last-known address.
15461573 If a certificate of title has been issued, it shall be canceled and
15471574 the vehicle identification number shall be preserved in the computer
15481575 of Service Oklahoma for at least five (5) years. The buyer of the
15491576 vehicle may not be sued and shall not be liable for monetary damages
15501577 to the lienholder,; however, the vehicle shall be subject to a valid
15511578 repossession by a lienholder.
15521579 S. Service Oklahoma shall notify the chief administrative
15531580 officer of the agency or department responsible for issuing motor
15541581 vehicle certificates of title in each state in the United States of
15551582 the types of motor vehicle certificate of title effective in
15561583 Oklahoma on and after January 1, 1989.
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15831611 T. When registering for the first time in this state a
15841612 remanufactured vehicle which has not been registered in any other
15851613 state since its remanufacture, before issuing a certificate of
15861614 title, Service Oklahoma shall require the applicant to deliver a
15871615 statement of origin from the remanufacturer.
15881616 U. If a vehicle is sold to a foreign buyer pursuant to the
15891617 provisions of the Automotive Dismantlers and Parts Recycler Act, the
15901618 licensed seller shall stamp the title with: “EXPORT ONLY.
15911619 NONTRANSFERABLE IN THE UNITED STATES.” The licensed seller shall
15921620 supply Service Oklahoma the title number, the vehicle identification
15931621 number and the foreign buyer’s bid identification number on a form
15941622 prescribed by Service Oklahoma. Service Oklahoma shall cancel the
15951623 title, and the vehicle identification number shall be preserved in
15961624 the computer files of Service Oklahoma for a period of not less than
15971625 five (5) years.
15981626 V. Service Oklahoma shall not be considered a necessary party
15991627 to any lawsuit which is instigated for the purpose of determining
16001628 ownership of a vehicle, wherein Service Oklahoma’s only involvement
16011629 would be to issue title, and the court shall issue an order
16021630 dismissing Service Oklahoma from the pending action. In the event
16031631 no other party or lienholder can be ident ified as to ownership or
16041632 claim, Service Oklahoma shall accept an affidavit of ownership from
16051633 the party claiming ownership and issue proper title thereon.
16061634 SECTION 3. This act shall become effective August 1, 2023.
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16331662 SECTION 4. It being immediately necessary f or the preservation
16341663 of the public peace, health or safety, an emergency is here by
16351664 declared to exist, by reason whereof this act shall take effect and
1636-be in full force from and after its passage and approval."
1637-Passed the House of Representatives the 25th day of April, 2023.
1638-
1639-
1640-
1641-
1642-
1643-Presiding Officer of the House of
1644- Representatives
1645-
1646-
1647-Passed the Senate the ____ day of _______ ___, 2023.
1648-
1649-
1650-
1651-
1652-
1653-Presiding Officer of the Senate
1654-
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1656-ENGR. S. B. NO. 576 Page 1 1
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1681-ENGROSSED SENATE
1682-BILL NO. 576 By: Montgomery of the Senate
1683-
1684- and
1685-
1686- Boatman of the House
1687-
1688-
1689-
1690-
1691-[ motor vehicles - tax exemptions - foreign export
1692-title - certificates - form – fee - exception -
1693-effective date -
1694- emergency ]
1695-
1696-
1697-
1698-
1699-BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
1700-SECTION 5. AMENDATORY 68 O.S. 2021, Section 2105, is
1701-amended to read as follows:
1702-Section 2105. An original or a transfer certificate of title or
1703-a foreign export certificate of title, as provided for in Section
1704-1105 of Title 47 of the Oklahoma Statutes, shall be issued without
1705-the payment of the excise tax levied by Section 2101 et seq. of this
1706-title for:
1707-1. Any vehicle owned by a nonresident person who operate s
1708-principally in some ot her state but who is in Oklahoma only
1709-occasionally;
1710-2. Any vehicle brought into this state by a person formerly
1711-living in another state, who h as owned and registered the vehicle in
1712-such other state of residence at least sixty (60) days prior to the
1713-time it is required to be registered in this state; pro vided,
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1740-however, this paragraph s hall not apply to businesses engaged in
1741-renting cars without a driver;
1742-3. Any vehicle registered by the State of Oklahoma, by any of
1743-the political subdivisions thereof, or by a fire department
1744-organized pursuant to Section 592 of Title 18 of the Oklahoma
1745-Statutes to be used for the purposes of the fire department, o r a
1746-vehicle which is the subject of a lease or lease -purchase agreement
1747-executed between the person seeking an or iginal or transfer
1748-certificate of title for the v ehicle and a municipality, count y,
1749-school district, or fire protection district. The person s eeking an
1750-original or transfer certificate of title shall provide adequate
1751-proof that the vehicle is subject to a lease or lease-purchase
1752-agreement with a municip ality, county, school district, or fire
1753-protection district at the time the excise tax levied would
1754-otherwise be payable. The Oklahoma Tax Commission shall have the
1755-authority to determine what constitutes a dequate proof as required
1756-by this section;
1757-4. Any vehicle, the legal ownership o f which is obtained by the
1758-applicant for a certificate of titl e by inheritance;
1759-5. Any used motor vehicle, travel trailer, or commercial
1760-trailer which is owned and being offe red for sale by a person
1761-licensed as a dealer to sell the same, under the provisi ons of the
1762-Oklahoma Vehicle License and Registration Act:
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1789-a. if such vehicle, travel trailer, or commercial trailer
1790-has been registered in Oklahoma and the excise tax
1791-paid thereon, or
1792-b. when such vehicle, travel trailer, or commercial
1793-trailer has been reg istered in some other state but is
1794-not the latest manufactured model.
1795-Provided, the provisions of this paragraph shall not be
1796-construed as allowing an exemption to any person not licensed as a
1797-dealer of used motor vehicles, travel trailers, or commercial
1798-trailers, or as an automotive dismantler and parts recycler in this
1799-state;
1800-6. Any vehicle which was purchased by a person licensed to sell
1801-new or used motor vehicles in anothe r state:
1802-a. if such vehicle is not purchased for operation or
1803-resale in this state, and
1804-b. the state from which the dealer is licensed offers
1805-reciprocal privileges to a dealer licensed in this
1806-state, pursuant to a reciprocal agreeme nt between the
1807-duly authorized agent of the Tax Commission and the
1808-licensing state;
1809-7. Any vehicle, the ownership of which was obtained by the
1810-lienholder or mortgagee under or by foreclosure of a lien or
1811-mortgage in the manner provided by law or to the in surer under
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1838-subrogated rights arising by reason of loss under an insuranc e
1839-contract;
1840-8. Any vehicle whic h is taxed on an ad valorem basis;
1841-9. Any vehicle or motor ve hicle, the legal ownership of which
1842-is obtained by transfers:
1843-a. from one corporation to another corporation purs uant
1844-to a reorganization. As used in this subsec tion the
1845-term “reorganization” means:
1846-(1) a statutory merger or consolidation, or
1847-(2) the acquisition by a corporation of substantially
1848-all of the properties of another corporation wh en
1849-the consideration is solely all or a part of the
1850-voting stock of the a cquiring corporation, or of
1851-its parent or subsidiary corporation,
1852-b. in connection with the wi nding up, dissolution, or
1853-liquidation of a corporation only when there is a
1854-distribution in kind to the sharehold ers of the
1855-property of such corporation,
1856-c. to a corporation where the former own ers of the
1857-vehicle or motor vehicle transferred are, immediate ly
1858-after the transfer, in control of the corporation, and
1859-the stock or securities receive d by each is
1860-substantially in proportion to the interest in the
1861-vehicle or motor vehicle prior to the tra nsfer,
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1888-d. to a partnership if the former owners of the vehicle
1889-or motor vehicle transferred are, immediately after
1890-the transfer, members of such partne rship and the
1891-interest in the partnership received by each is
1892-substantially in proportion to the interest in the
1893-vehicle or motor vehicle prior to the transfer,
1894-e. from a partnership to the members thereof when made in
1895-the dissolution of such partnership,
1896-f. to a limited liabilit y company if the former owners of
1897-the vehicle or motor vehicle transferred are,
1898-immediately after the transfer, members of the limited
1899-liability company and the interest in the limited
1900-liability company received by each is substanti ally in
1901-proportion to the interest in the vehicle or motor
1902-vehicle prior to the transfer, or
1903-g. from a limited liability company to the members
1904-thereof when made in th e dissolution of such
1905-partnership;
1906-10. Any vehicle which is purchased by a person to be used by a
1907-business engaged in renting motor vehicles without a driver,
1908-provided:
1909-a. the vehicle shall not be rented to the same person for
1910-a period exceeding ninety (9 0) days,
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1937-b. any such vehicle exempted from the excise tax by these
1938-provisions shall not b e placed under any type of lease
1939-agreement,
1940-c. on any such vehicle exempt ed from the excise tax by
1941-this subsection that is reregistered in this state,
1942-without a prior sale or transfer to the persons
1943-specified in divisions (1) and (2) of this
1944-subparagraph, at any time prior to the expiration of
1945-twelve (12) months from the date o f issuance of the
1946-original title, the seller shall pay immediately the
1947-amount of excise tax wh ich would have been due had
1948-this exemption not been granted plus a penalty of
1949-twenty percent (20%). No such exci se tax or penalty
1950-shall become due and payable if the vehicle is sold or
1951-transferred in a condition either physical or
1952-mechanical which would r ender it eligible for a
1953-salvage title pursuant to law or if the vehicle is
1954-sold and transferred in this state at any time prior
1955-to the expiration of twelve (12) m onths:
1956-(1) to the manufacturer o f the vehicle or its
1957-controlled financing arm, or
1958-(2) to a factory authorized franchised new motor
1959-vehicle dealer which holds a franchise of the
1960-same line-make of the vehicle being purchased, or
1961-
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1987-d. when this exemption is cla imed, the Tax Commission
1988-shall issue a special title which shall restrict the
1989-transfer of the title only within this state prior to
1990-the expiration of twelve (12) months unless:
1991-(1) payment of the excise tax plus penalty as
1992-provided in this section is made,
1993-(2) the sale is made to a perso n specified in
1994-division (1) or (2) of subparagraph c of this
1995-paragraph, or
1996-(3) the vehicle is eligible for a salvage title.
1997-For all other tax purposes vehicles herein exempted shall be
1998-treated as though the excise tax has be en paid;
1999-11. Any vehicle of the latest manufactured model, registered
2000-from a title in the nam e of the original manufacturer or assigned to
2001-the original manufacturer and issued by any state and transferred t o
2002-a licensed, franchised Oklahoma motor vehicle d ealer, as defined by
2003-Section 1102 of Title 47 of the Oklahoma Statutes, which holds a
2004-franchise of the same line-make as the vehicle being registered;
2005-12. Any new motor vehicle, regi stered in the name of a
2006-manufacturer or dealer of new motor vehicles, for which a license
2007-plate has been issued pursuant to Section 1116.1 of Title 47 of the
2008-Oklahoma Statutes, if such vehicle is authorized by the manufacturer
2009-or dealer for personal use by an individual. The aut horization for
2010-such use shall not exceed four (4) months which shall not be renew ed
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2037-or the exemption provided by this subsection shall not be
2038-applicable. The exemption provided by this subsection shall not be
2039-applicable to a transf er of ownership or regis tration subsequent to
2040-the first registration of t he vehicle by a manufacturer or dealer;
2041-13. Any vehicle, travel trailer, or commercial traile r of the
2042-latest manufacturer model purchased by a franchised Oklahoma dealer
2043-licensed to sell the same which hold s a franchise of the same line-
2044-make as the vehicle, travel trailer, or commercial trailer being
2045-registered;
2046-14. Any vehicle which is the subje ct of a lease or lease-
2047-purchase agreement and which the ownership of such vehicle is bein g
2048-obtained by the lessee , if the vehicle excise tax was paid at the
2049-time of the initial lease or lease -purchase agreement;
2050-15. Any vehicle which:
2051-a. is purchased by a private, nonprofit organization
2052-which is exempt from taxation pursuant to the
2053-provisions of Section 501(c)(3) of the Internal
2054-Revenue Code, 26 U.S.C., Section 50 1(c)(3), and which
2055-is primarily funded by a fraternal or civic service
2056-organization with at le ast one hundred local chapters
2057-or clubs, and
2058-b. is designed and used to provide mobile he alth
2059-screening services to the general public at no cost to
2060-the recipient, and for which no reimbursement of any
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2087-kind is received from any health insurance provider,
2088-health maintenance organization, or governmental
2089-program;
2090-16. Any vehicle which is purcha sed by an individual who has
2091-been honorably discharged from active servic e in any branch of the
2092-Armed Forces of the United States or Oklahoma National Guard and who
2093-has been certified by the United States Department of Veterans
2094-Affairs, its successor, or t he Armed Forces of the U nited States to
2095-be a disabled veteran in receipt of compensation at the one -hundred-
2096-percent rate for a permanent disability sustained through m ilitary
2097-action or accident resulting from disease contracted while in such
2098-active service and registered with the veterans registry created by
2099-the Oklahoma Department of Veterans Affairs; provid ed, that if the
2100-veteran has previously received exemption purs uant to this
2101-paragraph, no registration with the veterans registry shall be
2102-required. This exemption may not be claimed by an individual for
2103-more than one vehicl e in a consecutive three -year period, unless the
2104-vehicle is a replacement for a vehicle which was destroyed and
2105-declared by the insurer to be a total loss claim. The Tax
2106-Commission shall promulgate any rule s necessary to implement the
2107-provisions of this s ection; or
2108-17. Any vehicle on w hich ownership is transferred by a
2109-repossessor directly back t o the owner or owners from whom the
2110-vehicle was repossessed; provided, ownership shall be assigned by
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2137-the repossessor within thirty (30) days of issuance of the
2138-repossession title and shall be i dentical to that reflected in the
2139-vehicle title record immedia tely prior to the repossession ; or
2140-18. Any vehicle approved by the Oklahoma T ax Commission for the
2141-issuance of a foreign export certificate of title, as provided in
2142-Section 1105 of Title 47 of the Oklahoma Statutes.
2143-SECTION 6. AMENDATORY 47 O.S. 2021, Section 1105, as
2144-last amended by Section 110, Chapter 282, O.S.L. 2022 (47 O.S. Supp.
2145-2022, Section 1105), is amended to read as follows:
2146-Section 1105. A. As used in the Oklahoma Vehicle License and
2147-Registration Act:
2148-1. “Salvage vehicle” means any vehicle which is within the last
2149-ten (10) model years and which has been damaged by collision or
2150-other occurrence to the extent that the cost of repairing the
2151-vehicle for safe operation on the highway exceeds sixty percent
2152-(60%) of its fair market value, as defined by Sec tion 1111 of this
2153-title, immediately prior to the damage. For purposes of this
2154-section, actual repair costs shall only include labor and parts for
2155-actual damage to the suspension, motor, transmission, frame or
2156-unibody and designated structural components;
2157-2. “Rebuilt vehicle” means any salvage vehicle which has been
2158-rebuilt and inspected for the purpose of registration and title;
2159-3. “Flood-damaged vehicle” means a salvage or rebuilt vehicle
2160-which was damaged by flooding or a vehicle which was submerged a t a
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2187-level to or above the dashboard of the vehicle and on which an
2188-amount of loss was paid by the insurer;
2189-4. “Unrecovered-theft vehicle” means a vehicle which has been
2190-stolen and not yet recovered;
2191-5. “Recovered-theft vehicle” means a vehicle, including a
2192-salvage or rebuilt vehicle, which was recovered from a theft; and
2193-6. “Junked vehicle” means any vehicle which is incapable of
2194-operation or use on the highway, has no resale value except as a
2195-source of parts or scrap and has an eighty percent (80%) loss in
2196-fair market value; and
2197-7. “Foreign export vehicle ” means any motor vehicle purchased
2198-by an individual or entity doing business i n this state if the
2199-vehicle is contracted to be shipped to a destination outside of the
2200-United States or its territories or its tribal lands , as defined in
2201-25 U.S.C., Section 300 1(15), within one hundred twenty (120) days of
2202-purchase.
2203-B. The owner of every vehicle in this state shall possess a
2204-certificate of title as proof of ownership of such vehicle, except
2205-those vehicles registered pursuant to Section 1120 of this title and
2206-trailers registered pursuant to Section 1133 of this title,
2207-previously titled by anyone in another state and engaged in
2208-interstate commerce, and except as provided in subsection M of this
2209-section. Except for owners that possess an agricultural exemption
2210-permit pursuant to Section 1358.1 of Title 68 of the Oklahoma
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2237-Statutes, the owner of an all-terrain vehicle or a motorcycle used
2238-exclusively off roads or highways in this state which is purchased
2239-or the ownership of which is transferred on or after July 1, 2005,
2240-and the owner of a utility vehicle used exclusively off roads and
2241-highways in this state which is purchased or the ownership of which
2242-is transferred on or after July 1, 2008, shall possess a certificate
2243-of title as proof of ownership. Any person possessing an
2244-agricultural exemption permit and owning an all-terrain vehicle or a
2245-motorcycle used exclusively off roads or highways in this state
2246-which is purchased or the ownership of which is transferred on or
2247-after July 1, 2008, shall possess a certificate of title as proof of
2248-ownership. Upon receipt of proper application information by such
2249-owner, Service Oklahoma shall issue an original or transfer
2250-certificate of title. Until July 1, 2008, any security interest in
2251-an all-terrain vehicle that attached and was perfected before July
2252-1, 2005, and that has not otherwise terminated shall remain
2253-perfected, and shall take priority over any subsequently perfe cted
2254-security interest in the same all-terrain vehicle, notwithstanding
2255-that a certificate of title may have been issued with respect to the
2256-same all-terrain vehicle on or after July 1, 2005, and that a lien
2257-may have been recorded on said the certificate of title. There
2258-shall be eight nine types of certificates of title:
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2285-1. Original title for any motor vehicle which is not a
2286-remanufactured, salvage, unrecovered-theft, rebuilt, rebodied,
2287-foreign export, or junked vehicle;
2288-2. Salvage title for any motor vehicle which is a salvage
2289-vehicle or is specified as a salvage vehicle or the equivalent
2290-thereof on a certificate of title from another state;
2291-3. Rebuilt title for any motor veh icle which is a rebuilt
2292-vehicle;
2293-4. Junked title for any motor vehicle which is a junked vehicle
2294-or is specified as a junked vehicle or the equivalent thereof on a
2295-certificate of title from another state;
2296-5. Classic title for any motor vehicle, except a junked
2297-vehicle, which is twenty-five (25) model years or older;
2298-6. Remanufactured title for any vehicle which is a
2299-remanufactured vehicle;
2300-7. Unrecovered-theft title for any motor vehicle which has been
2301-stolen and not recovered; and
2302-8. Rebodied title for any motor vehicle which is a rebodied
2303-vehicle; and
2304-9. Foreign export title for any foreign export vehicle. The
2305-Oklahoma Tax Commission shall prescribe a form to be completed and
2306-submitted under oath together with the purchase contract for the
2307-vehicle and proof of commitment to ship the vehicle by common
2308-carrier vessel, air, rail, or any other comm on carrier for hire.
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2335-Upon approval by the Commission and payment of the required
2336-certificate of title fee, the Commission shall issue a foreign
2337-export certificate of title.
2338-Application for a certificate of title, whether the initial
2339-certificate of title or a duplicate, may be made to Service Oklahoma
2340-or any licensed operator. When application is made with a licensed
2341-operator, the application information shall be transmitted either
2342-electronically or by mail to Service Oklahoma by the licensed
2343-operator. If the application informatio n is transmitted
2344-electronically, the licensed operator shall forward the required
2345-application along with evidence of ownership, where required, by
2346-mail. Where the transmission of application information cannot be
2347-performed electronically, Service Oklahoma is authorized to provide
2348-postage paid envelopes to licensed operators for the purpose of
2349-mailing the application along with evidence of ownership, where
2350-required. Service Oklahoma shall upon receipt of proper application
2351-information issue an Oklahoma certificate of title. The
2352-certificates may be mailed to the applicant. Upon issuance of a
2353-certificate of title, Service Oklahoma shall provide the appropriate
2354-licensed operator with confirmation of such issuance.
2355-C. 1. The application for certificate of title shall be upon a
2356-blank form furnished by Service Oklahoma, containing:
2357-a. a full description of the vehicle,
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2384-b. the manufacturer’s serial or other identification
2385-number,
2386-c. the motor number and the date on which first sold by
2387-the manufacturer or dealer to the owner,
2388-d. any distinguishing marks,
2389-e. a statement of the applicant’s source of title,
2390-f. any security interest upon the vehicle, and
2391-g. such other information as Service Oklahoma may
2392-require.
2393-2. The application for a certificate of title for a vehicle
2394-which is within the last seven (7) model years shall require a
2395-declaration as to whether the vehicle has been damaged by collision
2396-or other occurrence and whether the vehicle has been recovered from
2397-theft and the extent of the damage to the vehicle. The declaration
2398-shall be made by the owner of a vehicle if:
2399-a. the vehicle has been damaged or stolen,
2400-b. the owner did or did not receive any payment for the
2401-loss from an insurer, or
2402-c. the vehicle is titled or registered in a state that
2403-does not classify the vehicle or brand the title
2404-because of damage to or loss of the vehicle similar to
2405-the classifications or brands utilized by this state.
2406-The declaration shall be based upon the best information and
2407-knowledge of the owner and shall be in addition to the requirements
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2434-specified in paragraph 1 of this subsection. Service Oklahoma shall
2435-not issue a certificate of title for a vehicle which is subject to
2436-the provisions of this paragraph without the required declaration,
2437-completed and signed by the owner of the vehicle. Upon receipt of
2438-an application without the properly completed declaration, Service
2439-Oklahoma shall return the application to the applicant with notice
2440-that the title may not be issued without the required declaration.
2441-Nothing in this paragraph shall prohibit Service Oklahoma from
2442-recognizing the type of or brand on a title or other ownership
2443-document issued by another state or the inspection conducted in
2444-another state and issuing the appropriate certificate of title for
2445-the vehicle.
2446-3. The certificate of title shall have the following security
2447-features:
2448-a. intaglio printing or security thread, with or without
2449-watermark,
2450-b. latent images,
2451-c. fluorescent inks,
2452-d. micro print,
2453-e. void background, and
2454-f. color coding.
2455-4. Each title issued pursuant to the provisions of the Oklahoma
2456-Vehicle License and Registration Act shall be color coded as
2457-determined by Service Oklahoma.
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2484-5. The certificate of title shall be of such size and design
2485-and color as Service Oklahoma may direct pursuant to the provisions
2486-of this section. The title shall be on colored paper or other
2487-material as designated by Service Oklahoma and be of such intensity
2488-or hue as will allow easy identification as to whether the title is
2489-an original title, a salvage title, a rebuilt title, remanufactured
2490-title, rebodied title, foreign export title, or a junked title. The
2491-type of title shall be identified on the front of the certificate of
2492-title. The original title, rebuilt title, remanufactured title, an
2493-unrecovered-theft title, rebodied title, foreign export title, or
2494-classic title shall be identified by the word “Original”, “Rebuilt”,
2495-“Remanufactured”, “Unrecovered Theft”, “Rebodied”, “Foreign Export”,
2496-or “Classic” printed in the upper right quadrant of the certificate
2497-of title, in the space which is currently captioned “type of title”.
2498-A rebodied title shall also identify on the front of the title the
2499-year, make and model of the originally manufactured vehicle which
2500-has been rebodied and display a notation that reads as follows:
2501-“This vehicle has been assembled with new major components licensed
2502-by the original manufacturer.”
2503-D. 1. To obtain an original certificate of title for a vehicle
2504-that is being registered for the first time in this state which has
2505-not been previously registered in any other state, the applicant
2506-shall be required to deliver, as evidence of ownership, a
2507-manufacturer’s certificate of origin properly assigned by the
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2534-manufacturer, distributor, or dealer licensed in this or any other
2535-state shown thereon to be the last transferee to the applicant upon
2536-a form to be prescribed and approved by Service Oklahoma. A
2537-manufacturer’s certificate of origin shall contain:
2538-a. the manufacturer’s serial or other identification
2539-number,
2540-b. date on which first sold by the manufacturer to the
2541-dealer,
2542-c. any distinguishing marks including model and the year
2543-same was made,
2544-d. a statement of any security interests upon the
2545-vehicle, and
2546-e. such other information as Service Oklahoma may
2547-require.
2548-2. The manufacturer’s certificate of origin shall have the
2549-following security features:
2550-a. intaglio printing or security thread, with or without
2551-watermark,
2552-b. latent images,
2553-c. fluorescent inks,
2554-d. micro print, and
2555-e. void background.
2556-E. In the absence of a dealer’s or manufacturer’s number,
2557-Service Oklahoma may assign such identifying number to the vehicle,
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2584-which shall be permanently stamped, burned, or pressed or attached
2585-into the vehicle, and a certificate of title shall be delivered to
2586-the applicant upon payment of all fees and taxes, and the remaining
2587-copies shall be permanently filed and indexed by Service Oklahoma.
2588-Service Oklahoma shall assign an identifying number to any rebuilt
2589-vehicle if the vehicle identification number displayed on the
2590-rebuilt vehicle does not accurately describe the vehicle as rebuilt.
2591-The licensed operator, at the time of inspection of the rebuilt
2592-vehicle pursuant to Section 1111 of this title, shall identify the
2593-make, model, and year for the body to accurately describe the
2594-rebuilt vehicle. At the time of the inspection, an appropriate
2595-identifying number shall be permanently stamped, burned, pressed, or
2596-attached on the rebuilt vehicle. The assigned identifying number
2597-shall be recorded on the certificate of title for the rebuilt
2598-vehicle. The dealer’s or manufacturer’s vehicle identification
2599-number on the rebuilt vehicle shall be preserved in the computer
2600-files of Service Oklahoma for at least five (5) years.
2601-F. When registering for the first time in this state a vehicle
2602-which was not originally manufactured for sale in the United States,
2603-to obtain a certificate of title, Service Oklahoma shall require the
2604-applicant to deliver:
2605-1. As evidence of ownership, if the vehicle has not previously
2606-been titled in the United States, the documents constituting valid
2607-proof of ownership in the country in which the vehicle was
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2634-originally purchased, together with a notarized translation of any
2635-such documents; and
2636-2. As evidence of compliance with federal law, copies of the
2637-bond release letters for the vehicle issued by the United States
2638-Environmental Protection Agency and the United States Department of
2639-Transportation, together with a receipt issued by the Internal
2640-Revenue Service indicating that the applicable federal gas guzzler
2641-tax has been paid.
2642-Service Oklahoma shall not issue a certificate of title for a
2643-vehicle which is subject to the provisions of this paragraph without
2644-the required documentation from agencies of t he United States and
2645-evidence of ownership. Upon receipt of an application without the
2646-required documentation, Service Oklahoma shall return the
2647-application to the applicant with notice that the certificate of
2648-title may not be issued without the required documentation. Nothing
2649-in this paragraph shall prohibit Service Oklahoma from issuing
2650-certificates of title for antique or classic vehicles not driven
2651-upon the public streets, roads, or highways, for mini-trucks
2652-registered pursuant to Section 1151.3 of this title, or for medium-
2653-speed electric vehicles.
2654-G. When registering in this state a vehicle which was titled in
2655-another state and which title contains the name of a secured party
2656-on the face of the other state certificate of title, or such state
2657-certificate is being held by the secured party in that state or any
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2684-other state, Service Oklahoma or the licensed operator shall
2685-complete a lien entry form as prescribed by Service Oklahoma. The
2686-owner of such vehicle shall file an affidavit with Service Oklahoma
2687-or the licensed operator stating that title to the vehicle is being
2688-held by a secured party, has not been issued pursuant to the laws of
2689-the state where titled, and that there is an existing lien or
2690-encumbrance on the vehicle. The current name and address of the
2691-secured party or lienholder shall also be stated in the affidavit.
2692-The form of the affidavit shall be prescribed by Service Oklahoma
2693-and contain any other information deemed necessary by Service
2694-Oklahoma. A statement of the lien or encumbrance shall be included
2695-on the Oklahoma certificate of title and the lien or encumbrance
2696-shall be deemed continuously perfected as though it had been
2697-perfected pursuant to Section 1110 of this title. For completing
2698-the lien entry form and recording the security interest on the
2699-certificate of title, Service Oklahoma or the licensed operator
2700-shall collect a fee of Three Dollars ($3.00) which shall be in
2701-addition to other fees provided by the Oklahoma Vehicle License and
2702-Registration Act. The fee, if collected by the licensed operator
2703-pursuant to this subsection, shall be retained by the licensed
2704-operator.
2705-H. The charge for each certificate of title issued, except for
2706-junked titles and foreign export titles as defined in paragraph 4 of
2707-subsection B of this s ection, shall be Eleven Dollars ($11.0 0),
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2733-
2734-which charge shall be in addition to any other fees or taxes imposed
2735-by law for such vehicle. One Dollar ($1.00) of each such charge
2736-shall be deposited in the Oklahoma Tax Commission Reimbursement Fund
2737-through December 31, 2022, and beginning January 1, 2023, it shall
2738-be deposited in the Service Oklahoma Reimbursement Fund. However,
2739-the charge shall not apply to any vehicle which is to be registered
2740-in this state pursuant to the provisions of Section 1120 or 1133 of
2741-this title and which was registered in another state at least sixty
2742-(60) days prior to the time it is required to be registered in this
2743-state. When an insurer requests a salvage or junk title in the name
2744-of the insurer resulting from the settlement of a total loss claim
2745-and upon presentation of appropriate proof of loss documentation as
2746-required by Service Oklahoma, such transfer may be processed as one
2747-title transaction, without first requiring issuance of a replacement
2748-certificate of title in the name of the vehicle owner. The fee
2749-shall be Twenty-two Dollars ($22.00). Two Dollars ($2.00) of this
2750-fee shall be deposited in the Oklahoma Tax Commission Reimbursement
2751-Fund. The charge for a foreign export title shal l be One Hundred
2752-Dollars ($100.00), which charge shall b e in addition to any ot her
2753-fees or taxes imposed by law for such vehicle. One Dollar ($1.00)
2754-of this fee shall be deposited in the Tax Commission Reimbursement
2755-Fund.
2756-I. The vehicle identification number of a junked vehicle shall
2757-be preserved in the computer files of Service Oklahoma for a period
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2783-
2784-of not less than five (5) years. The charge of junked titles as
2785-defined in paragraph 4 of subsection B of this section shall be Four
2786-Dollars ($4.00). The fee remitted to the Tax Commission shall be
2787-deposited in the Oklahoma Tax Commission Reimbursement Fund through
2788-December 31, 2022, and beginning January 1, 2023, this fee shall be
2789-deposited in the Service Oklahoma Reimbursement Fund.
2790-J. If a vehicle is sold to a resident of another state
2791-destroyed, dismantled, or ceases to be used as a vehicle, the owner
2792-shall immediately notify Service Oklahoma. Absent evidence to the
2793-contrary, failure to notify Service Oklahoma shall be prima facie
2794-evidence that the vehicle has been in continuous operation in this
2795-state.
2796-K. If a vehicle is stolen, the owner shall immediately notify
2797-the appropriate law enforcement agency. Immediately after receiving
2798-such notification, the law enforcement agency shall notify Service
2799-Oklahoma.
2800-L. Except for all-terrain vehicles, utility vehicles and
2801-motorcycles used exclusively for off-road use, no title for an out-
2802-of-state vehicle, except for foreign export titles or any commercial
2803-truck or truck-tractor registered pursuant to Section 1120 of this
2804-title which is engaged in interstate commerce or any trailer or
2805-semitrailer registered pursuant to Section 1133 of this tit le which
2806-is engaged in interstate commerce, shall be issued without an
2807-inspection of such vehicle and payment of a fee of Four Dollars
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2833-
2834-($4.00) for such inspection; provided, Service Oklahoma may enter
2835-into reciprocal agreements with other states for such inspections to
2836-be performed at locations outside the boundaries of this state for
2837-vehicles which:
2838-1. Are offered for sale at auction;
2839-2. Have been solely used as vehicles for rent under the
2840-ownership of a licensed motor vehicle dealer or a person engaged in
2841-the business of renting motor vehicles; or
2842-3. Have not been registered in this or any other state for more
2843-than one (1) year.
2844-The inspection shall include a comparison of the vehicle
2845-identification number on the vehicle with the number recorded on the
2846-ownership records and the recording of the actual odometer reading
2847-on the vehicle. The four-dollar fee shall be collected by the
2848-licensed operator or Service Oklahoma when the title is issued. The
2849-licensed operator shall retain Two Dollars ($2.00). The remaining
2850-Two Dollars ($2.00) shall be deposited in the Oklahoma Tax
2851-Commission Reimbursement Fund through December 31, 2022, and
2852-beginning January 1, 2023, this fee shall be deposited in the
2853-Service Oklahoma Reimbursement Fund.
2854-Service Oklahoma may allow the inspection to be performed at a
2855-location out-of-state by another state’s department of motor
2856-vehicles or state police.
2857-
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2873-16
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2879-22
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2882-
2883-M. No title for any out-of-state vehicle offered for sale at
2884-salvage pools, salvage disposal sales, or an auction, or by a dealer
2885-or a licensed automotive dismantler and parts recycler, sh all be
2886-issued without an inspection to compare the vehicle identification
2887-number on the vehicle with the num ber recorded on the ownership
2888-record and to record the actual odometer reading on the vehicle.
2889-Upon request of the seller, person or entity conduct ing an auction,
2890-dealer or licensed dismantler, the inspection shall be conducted at
2891-the location or place of business of the sale, auction, dealer, or
2892-the dismantler. The inspection shall be conducted by any licensed
2893-operator or a duly authorized employee thereof; provided, if the
2894-vehicle identification number on the vehicle offered for sale at
2895-salvage pools, salvage disposal sales or a classic or antique
2896-auction does not match the number recorded on the ownership record,
2897-the inspection may be conducted at the location of or place of
2898-business of such sale or auction by any state, county or city law
2899-enforcement officer. Service Oklahoma may enter into reciprocal
2900-agreements with other states for such inspections to be performed at
2901-locations outside the boundaries of this state for vehicles which:
2902-1. Are offered for sale at auction;
2903-2. Have been solely used as vehicles for rent under the
2904-ownership of a licensed motor vehicle dealer or a person engaged in
2905-the business of renting motor vehicles; or
2906-
2907-ENGR. S. B. NO. 576 Page 26 1
2908-2
2909-3
2910-4
2911-5
2912-6
2913-7
2914-8
2915-9
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2917-11
2918-12
2919-13
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2922-16
2923-17
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2927-21
2928-22
2929-23
2930-24
2931-
2932-3. Have not been registered in this or any other state for more
2933-than one (1) year.
2934-The inspection shall be certified upon forms prescribed by Service
2935-Oklahoma. The name and other identification of the author ized
2936-person conducting the inspection shall be legibly printed or typed
2937-on the form. Prior to any inspection by any employee of a licensed
2938-operator, the licensed operator shall notify Service Oklahoma of the
2939-name and any other identification information requested by Service
2940-Oklahoma of the authorized person. A signature specimen of the
2941-authorized person shall be submitted to Service Oklahoma by the
2942-employing licensed operator. If the authorization to inspect
2943-vehicles is withdrawn or the employer-employee relationship is
2944-terminated, the licensed operator, immediately, shall notify Service
2945-Oklahoma and return any remaining inspection forms to Service
2946-Oklahoma. The fee for the inspection shall be Four Dollars ($4.00).
2947-The licensed operator shall retain Three Dollars ($3.00) of the fee.
2948-Fees received by a licensed operator or an authorized employee
2949-thereof shall be handled and accounted for in the manner as
2950-prescribed by law for any other fees paid to or received by a
2951-licensed operator. Out-of-state vehicles brought into this state by
2952-a person licensed in another state to sell new or used vehicles to
2953-be sold within this state at a motor vehicle auction which is
2954-limited to dealer-to-dealer transactions shall not be required to be
2955-inspected, unless the vehicle is purchased by an Oklahoma dealer.
2956-
2957-ENGR. S. B. NO. 576 Page 27 1
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2959-3
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2964-8
2965-9
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2968-12
2969-13
2970-14
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2972-16
2973-17
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2976-20
2977-21
2978-22
2979-23
2980-24
2981-
2982-Any person licensed in another state to sell new or used motor
2983-vehicles, who offers a motor vehicle for sale within this state at a
2984-motor vehicle auction which is limited to dealer-to-dealer
2985-transactions, shall not be within the definition of “owner” in
2986-Section 1102 of this title, for purposes of Section 1101 et seq. of
2987-this title.
2988-N. A licensed motor vehicle dealer, upon payment of a fee of
2989-Fifteen Dollars ($15.00), may reassign an out-of-state certificate
2990-of title to a used motor vehicle provided such dealer obtains the
2991-appropriate inspection form required by either subsection L or M of
2992-this section and attaches the form to the out-of-state certificate
2993-of title. Licensed operators shall be allowed to retain Two Doll ars
2994-and twenty-five cents ($2.25) of the fee plus an additional Two
2995-Dollars ($2.00) or Three Dollars ($3.00) as provided in subsections
2996-L and M of this section for performance of the inspection. Two
2997-Dollars ($2.00) of the fee shall be deposited in th e Service
2998-Oklahoma Reimbursement Fund. An out-of-state vehicle which has been
2999-rebuilt shall be inspected pursuant to the provisions of Section
3000-1111 of this title. Service Oklahoma shall train licensed operators
3001-in interpreting vehicle identification numbers to assure that it
3002-accurately describes the vehicle and to detect rollback or
3003-alteration of the odometer. Failure of a licensed operator to
3004-inspect the vehicle and make the required notations shall be a
3005-misdemeanor punishable by a fine of not more than One Thousand
3006-
3007-ENGR. S. B. NO. 576 Page 28 1
3008-2
3009-3
3010-4
3011-5
3012-6
3013-7
3014-8
3015-9
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3018-12
3019-13
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3026-20
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3028-22
3029-23
3030-24
3031-
3032-Dollars ($1,000.00) for the first offense and Five Thousand Dollars
3033-($5,000.00) for the second offense or subsequent offense, or by
3034-imprisonment in the county jail for not more than six (6) months, or
3035-by both such fine and imprisonment.
3036-O. The ownership of any unrecovered vehicle which has been
3037-declared a total loss by an insurer because of theft shall be
3038-transferred to the insurer by an unrecovered-theft vehicle title;
3039-provided, the ownership of any such vehicle which has been declared
3040-a total loss by an insurer licensed by the Insurance Department of
3041-the State of Oklahoma this state and maintaining a multi-state motor
3042-vehicle salvage processing center in this state shall be transferred
3043-to the insurer by a salvage or an unrecovered-theft title without
3044-the requirement of a visual inspection of the vehicle identification
3045-number by the insurer. Upon recovery of the vehicle, the ownership
3046-shall be transferred by an original title, salvage title, or junked
3047-title, as may be appropriate based upon an estimate of the amount of
3048-loss submitted by the insurer.
3049-P. When an insurance company makes a total loss settlement on a
3050-total loss vehicle and the insurance company or a salvage pool
3051-authorized by the insurance company is unable to obtain the properly
3052-endorsed certificate of ownership or other evidence of ownership
3053-acceptable to Service Oklahoma within thirty (30) days following
3054-acceptance by the owner of an offer of an amount in settlement of a
3055-total loss, that insurance company or salvage pool, on a form
3056-
3057-ENGR. S. B. NO. 576 Page 29 1
3058-2
3059-3
3060-4
3061-5
3062-6
3063-7
3064-8
3065-9
3066-10
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3068-12
3069-13
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3072-16
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3076-20
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3078-22
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3081-
3082-provided by Service Oklahoma and signed under penalty of perjury,
3083-may request Service Oklahoma to issue the applicable salvage title
3084-for the vehicle. The request shall include information declaring
3085-that the requester has made at least two written attempts to obtain
3086-the certificate of ownership or other acceptable evidence of title.
3087-Q. The owner of any vehicle which is incapable of operation or
3088-use on the public roads and has no resale value, except as parts,
3089-scrap, or junk, may deliver the certificate of title to the vehicle
3090-to Service Oklahoma for cancellation. Upon verification that any
3091-perfected lien against the vehicle has been released, the
3092-certificate of title shall be canceled without any fee, charge, or
3093-cost required from the owner. The vehicle identification numbers on
3094-the certificates of title shall be preserved in the computer files
3095-of Service Oklahoma for at least five (5) years from the date of
3096-cancellation of the certifi cate of title. Service Oklahoma shall
3097-prescribe and provide an affidavit form to be completed by the owner
3098-of any vehicle for which the certificate of title is canceled. No
3099-title or registration shall subsequently be issued for a vehicle for
3100-which the certificate of title has been surrendered pursuant to this
3101-subsection. Service Oklahoma shall prescribe a form for the
3102-transfer of ownership of a vehicle for which the certificate of
3103-title has been canceled.
3104-R. The owner of a vehicle which is not within the last ten (10)
3105-model years, not roadworthy and not capable of repair for operation
3106-
3107-ENGR. S. B. NO. 576 Page 30 1
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3119-13
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3127-21
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3129-23
3130-24
3131-
3132-or use on the roads an d highways, or a vehicle which is being sold
3133-to a scrap metal dealer pursuant to Section 11-92 of Title 2 of the
3134-Oklahoma Statutes, shall transfer the vehicle only upon a
3135-certificate of ownership prescribed by Service Oklahoma, if the
3136-certificate of title to the vehicle is lost, has been canceled, or
3137-otherwise not available. The prescribed owner ship form shall
3138-include the names and addresses of the buyer and seller, the driver
3139-license number or Social Security number of the seller, t he make and
3140-model of the vehicle, and the public vehicle identification number.
3141-If there is no public vehicle iden tification number, the vehicle
3142-shall be inspected by a law enforcement officer to verify the
3143-absence of the number on the vehicle and the pre scribed ownership
3144-form shall include a signed statement, by such officer, verifying
3145-the absence of the number.
3146-The certificate of ownership shall be completed in triplicate.
3147-The buyer and seller shall each retain a copy. Within thirty (30)
3148-days of the transaction, the seller shall submit one copy to Service
3149-Oklahoma or a licensed operator accompanied with a fee of Four
3150-Dollars ($4.00). One Dollar ($1.00) shall be retained by the
3151-licensed operator and Three Dollars ($3.00) shall be deposited in
3152-the Oklahoma Tax Commission Reimbursement Fund in the State Treasur y
3153-through December 31, 2022, and beginning January 1, 2023, this fee
3154-shall be deposited in the Service Oklahoma Reimbursement Fund.
3155-
3156-ENGR. S. B. NO. 576 Page 31 1
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3180-
3181-Upon receipt of the certificate, Service Oklahoma shall verify
3182-that any perfected lien upon the vehicle h as been released. If the
3183-lien is not released, Service Oklahoma shall mail notice of the
3184-transfer to the lienholder at the l ienholder’s last-known address.
3185-If a certificate of title has been issued, it shall be canceled and
3186-the vehicle identification number shall be preserved in the computer
3187-of Service Oklahoma for at least five (5) years. The buyer of the
3188-vehicle may not be sued and shall not be liable for monetary damages
3189-to the lienholder,; however, the vehicle sh all be subject to a valid
3190-repossession by a lienholder.
3191-S. Service Oklahoma shall notify the chief administrative
3192-officer of the agency or department responsible for issuing motor
3193-vehicle certificates of title in each state in the United States of
3194-the types of motor vehicle certificate of title effective in
3195-Oklahoma on and after January 1, 1989.
3196-T. When registering for the first time in this state a
3197-remanufactured vehicle which has not been registered in any other
3198-state since its remanufacture, before issuing a certificate of
3199-title, Service Oklahoma shall require the applicant to deliver a
3200-statement of origin from the remanufacturer.
3201-U. If a vehicle is sold to a foreign buyer pursuant to the
3202-provisions of the Automotive Dismantlers and Parts Recycler Act, the
3203-licensed seller shall stamp the title with: “EXPORT ONLY.
3204-NONTRANSFERABLE IN THE UNITED STATES.” The licensed seller shall
3205-
3206-ENGR. S. B. NO. 576 Page 32 1
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3212-7
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3215-10
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3217-12
3218-13
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3222-17
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3225-20
3226-21
3227-22
3228-23
3229-24
3230-
3231-supply Service Oklahoma the title number, the vehicle identification
3232-number and the foreign buyer’s bid identification number on a form
3233-prescribed by Service Oklahoma. Service Oklahoma shall cancel the
3234-title, and the vehicle identification number shall be preserved in
3235-the computer files of Service Oklahoma for a period of not less than
3236-five (5) years.
3237-V. Service Oklahoma shall not be considered a necessary party
3238-to any lawsuit which is instigated for the purpose of determining
3239-ownership of a vehicle, wherein Service Oklahoma’s only involvement
3240-would be to issue title, and the court shall issue an order
3241-dismissing Service Oklahoma from the pending action. In the event
3242-no other party or lienholder can be ident ified as to ownership or
3243-claim, Service Oklahoma shall accept an affidavit of ownership from
3244-the party claiming ownership and issue proper title thereon.
3245-SECTION 7. This act shall become effective July 1, 2023.
3246-SECTION 8. It being immediately necessary f or the preservation
3247-of the public peace, health or safety, an emergency is here by
3248-declared to exist, by reason whereof this act shall take effect and
32491665 be in full force from and after its passage and approval.
32501666
3251-ENGR. S. B. NO. 576 Page 33 1
3252-2
3253-3
3254-4
3255-5
3256-6
3257-7
3258-8
3259-9
3260-10
3261-11
3262-12
3263-13
3264-14
3265-15
3266-16
3267-17
3268-18
3269-19
3270-20
3271-21
3272-22
3273-23
3274-24
3275-
3276-Passed the Senate the 8th day of March, 2023.
3277-
3278-
3279-
3280- Presiding Officer of the Senate
3281-
3282-
3283-Passed the House of Representatives the ____ day of __________,
3284-2023.
3285-
3286-
3287-
3288- Presiding Officer of the House
3289- of Representatives
3290-
3291-
1667+COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS AND BUDGET, dated
1668+04/19/2023 - DO PASS, As Amended.